MGM Resorts International: Record-Breaking Year and Expansion Plans
2024-03-05
MGM Resorts International, a prominent hospitality and entertainment company, conducted its earnings conference call for the fourth quarter and full-year 2023. The call saw the participation of key executives, including Bill Hornbuckle, Corey Sanders, Jonathan Halkyard, Kenneth Feng, and Andrew Chapman.
During the call, Bill Hornbuckle highlighted the remarkable achievements of MGM Resorts in 2023. The company attained exceptional results, with record-high adjusted property EBITDAR in Las Vegas and MGM China. Seven domestic properties under MGM Resorts set individual records for adjusted property EBITDAR for the full year, while employees received record NPS scores from customers throughout 2023.
A strategic focus for MGM Resorts International in Las Vegas, as mentioned by Bill Hornbuckle, was the transformation of Las Vegas into a premier sports and entertainment hub globally. Notably, the company successfully hosted Super Bowl LVIII in Las Vegas, marking a significant hotel and casino event.
The operations of MGM Resorts in Las Vegas were notably influenced by two major events - the inaugural Formula 1 race in November and the Super Bowl. These events had a substantial impact on the company's operations, with the proximity to various venues in Las Vegas during citywide events enabling an expanded reach and enhanced brand visibility.
Moreover, MGM Resorts International unveiled a partnership with Marriott, enabling Marriott Bonvoy customers to seamlessly book rooms at select MGM properties in Las Vegas. This collaboration aimed to introduce 16 brands by the end of Q1, attracting a new customer base at reduced acquisition costs, higher rates, and increased property spending.
In the realm of digital business, BetMGM achieved a significant technological milestone in January with the approval and subsequent migration of the Entain platform in Nevada. The company is poised to go live in 29 markets by 2024, including the upcoming launch in North Carolina.
MGM Resorts International leveraged its balance sheet to gain competitive advantages in the U.S. market. By utilizing the MGM Resorts balance sheet, the company now offers the highest jackpot payouts among all competitors in the U.S., enhancing the appeal of its offerings.
Regarding the development pipeline, MGM Resorts made strides in Osaka and New York. In Osaka, liquefaction countermeasures have commenced, with preparatory construction efforts slated to begin in 2025 for an anticipated opening in 2030. In New York, the request for proposal process is ongoing, with a full application expected to be submitted to the government by the middle of the year.
Financially, MGM Resorts generated net revenues of $4.4 billion in the fourth quarter, with net income amounting to $1.1 billion. The company also repurchased 14% of its outstanding shares in the previous year, marking one of the most substantial share repurchase years to date.
In conclusion, MGM Resorts International had a successful year in 2023, achieving record-breaking results, expanding its digital business, and advancing in development opportunities. The company remains committed to propelling growth, enhancing the guest experience, and seizing new market prospects.